Joint Open Meeting of Securities and Exchange Commission and Commodity Futures Trading Commission
The Securities and Exchange Commission will hold a Joint Open Meeting with the Commodity Futures Trading Commission to seek input from the public on harmonization of market regulation on Sept. 2, 2009, from 9:00 a.m. until 5:00 p.m. at the CFTC and on Sept. 3, 2009, from 9:00 a.m. until 12:30 p.m. at the SEC.
The Joint Open Meeting will take place on Sept. 2, 2009, at the CFTC's headquarters at Three Lafayette Centre, 1155 21st Street, N.W., Lobby Level Hearing Room (Room 1000), Washington, D.C. 20581 and on Sept. 3, 2009, at the SEC's headquarters at 100 F Street, N.E., Auditorium (Room L-002), Washington, D.C. 20549. The Joint Open Meeting will be open to the public with seating on a first-come, first-served basis. Visitors will be subject to security checks.
Discussion topics at the Joint Open Meeting will include the regulation of exchanges and markets; the regulation of intermediaries; the regulation of clearance and settlement; enforcement; and the regulation of investment funds. For further information, please contact: The Office of the Secretary at (202) 551-5400.
SEC Charges Texas Investment Adviser for Operating a Ponzi Scheme
On August 25, the Securities and Exchange Commission filed an emergency civil injunctive action against Thomas Lester Irby II, Titan Wealth Management, LLC, and Point West Partners, LLC for their roles in defrauding over thirty advisory clients by selling fictitious interests in what Irby claimed were European Mid-Term Notes (MTNs).
The Commission's complaint alleges that beginning in 2007 and continuing through the present, Irby, Titan, a Commission-registered investment adviser, and Point West, raised over $3.1 million from over 30 of Titan's advisory clients. Irby told investors that he would pool their funds to purchase an MTN or an interest in an MTN, with promised short-term returns ranging from 10 to 50 per cent. The Commission's complaint further alleges that, contrary to representations to investors, the defendants did not pool investor funds to purchase any interest in an MTN. Instead, Irby and Titan misappropriated at least 80 per cent of investor funds for personal use, to make Ponzi payments to certain investors, and for transfer to the relief defendants for no apparent consideration.
The Commission's complaint, filed in United States District for the Eastern District of Texas, alleges that Irby, Titan and Point West violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and that Irby and Titan violated Sections 206(1) and 206(2) of the Investment Advisers Act. The Commission's complaint also names Joseph Romanow, David Romanow, Karen Bowie, France Michaud, John J. Kim, and Pegasus Holdings Group, Inc. as relief defendants.
The Commission seeks a temporary restraining order, asset freeze, accounting, an order preserving documents, and expedited discovery against each defendant. The Commission also seeks preliminary and permanent injunctions against further violations of the securities laws, disgorgement plus prejudgment interest, and civil money penalties from each defendant. The Commission also seeks to recover investor funds improperly obtained by the relief defendants. [SEC v. Titan Wealth Management, LLC, Point West Partners, LLC, and Thomas Lester Irby II, Defendants, and Joseph Romanow, David Romanow, Karen Bowie, France Michaud, John J. Kim, and Pegasus Holdings Group, Inc., Civil Action No. 4:09-cv-418, E.D. Tx, Aug. 25, 2009] (LR-21184)
INVESTMENT COMPANY ACT RELEASES
Clough Global Allocation Fund, et al.
A notice has been issued giving interested persons until September 18, 2009, to request a hearing on an application filed by Clough Global Allocation Fund, et al., for an order under section 6(c) of the Investment Company Act for an exemption from section 19(b) of the Act and rule 19b-1 under the Act. The order would permit certain registered closed-end investment companies to make periodic distributions of long-term capital gains with respect to their outstanding common stock as often as monthly in any one taxable year, and as frequently as distributions are specified by or in accordance with the terms of any outstanding preferred stock that such investment companies may issue. (Rel. IC-28850 - August 24)
OOK, Inc., et al.
A notice has been issued giving interested persons until September 16, 2009, to request a hearing on an application filed by OOK, Inc., et al. for an order to permit (a) certain open-end management investment companies and their series, to issue shares (Fund Shares) that can be redeemed only in large aggregations (Creation Unit Aggregations); (b) secondary market transactions in Fund Shares to occur at negotiated prices; (c) certain affiliated persons of the investment companies or series to deposit securities into, and receive securities from, the investment companies or series in connection with the purchase and redemption of Creation Unit Aggregations; and (d) certain registered management investment companies and unit investment trusts outside of the same group of investment companies as the investment companies or series to acquire Fund Shares. (Rel. IC-28851 - August 25)
SECURITIES ACT REGISTRATIONS
RECENT 8K FILINGS